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How to Calculate Customer Acquisition Cost.
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How to Calculate Customer Acquisition Cost.

Rosemary Njeri

Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts that are needed to acquire a customer.

This metric is very important as it helps a company calculate how important a customer is to it. It also helps it to calculate the resulting ROI of an acquisition.

Formula to calculate CAC.

Calculate Customer Acquisition Cost.

Example:

Suppose a company spent $ 50 in sales and marketing in a certain month, if in that same month they acquired 10 new customers, calculate the company’s CAC.

 Calculate Customer Acquisition Cost.

Thus, the company’s CAC is $5.

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